Local airlines urged to advertise all-in price on fares

The Consumers' Institute wants New Zealand to follow Australia's lead and make all airlines advertise the total cost of their airfares.

After months of consumer lobbying, a law change in Australia has forced Qantas and Virgin Blue to announce that they will change their policies in the next few weeks.

Consumers' Institute chief executive David Russell said a similar law should enforce the same policy on airlines that advertise in New Zealand.

"At the moment, airlines advertise a base price, tucking away in small print the extra taxes, levies and surcharges, leaving customers to do the calculation.

"There are clear advantages for New Zealand consumers to know what the total price is. Everyone wants to know how much they have to pay to get from A to B."

Mr Russell said Emirates announced last week it would advertise all-inclusive prices. "We understand other airlines have been talking amongst themselves about following suit and we encourage them to do so as quickly as possible."

But Qantas New Zealand marketing manager David Libeau said the new law only applied to advertising in Australia.

He could not comment on how Qantas would advertise airfares in New Zealand in future.

Air New Zealand spokesman Mike Tod said the airline "has no intention of advertising international airfares all-inclusive".

Freedom Air also had no such plans. General manager Stephen Jones said: "It's such a competitive market in New Zealand. It would be difficult for us to advertise differently from our competitors."

Freedom Air always had an all-inclusive advertising policy in Australia, he added.

What you really pay

* A Herald survey in February found the total cost of a flight from Auckland to the Gold Coast was almost double the advertised price of $158.

* Once airport taxes, fuel surcharges and other extras were added, the true cost came to $310 on Pacific Blue and $309.49 on Freedom Air.